geoffrey manley -afdb

Finance for sustainable

agribusiness in Africa

Geoffrey Manley

Private Sector Operations Department

African Development Bank

Outline

• ADB approach to agribusiness finance

• Project examples:

– Debt

– Equity

• Concluding thoughts

ADB’s 3 levers for agribusiness

Catalytic Transactions

Enabling Environment

Analysis & Strategy

ADB support can be direct or indirectD

ire

ct

•Corporate

•Structured

•Guarantees

•Subordinated

debt

•Trust

funds

Ind

ire

ct

Technical

Assistance

•PE funds

•Local FIs

MSME

Support

•PE funds

•Local FIs

•Commercial

projects

Senior

Lending

•Local FIs

•Loan funds

Equity/quasi-

equity

•PE Funds

Markala Sugar leverages a PPP approach

Private Sector Senior Loan:

• Sugar mill

• Ethanol distillery

• Electricity co-gen plant

Public Sector Soft Loan:

• 14,000 ha irrigated cane

• 2,250 ha rice/vegetables

• Social infrastructure

Lake Harvest is betting on regional markets

• Expansion of African middle class

• Southern Africa: Unmet demand

for affordable fish = 100,000 tons

• Lake Harvest will expand • Lake Harvest will expand

production from 2,500 tpa to

20,000 tpa of which 85%+ for

AAF is a partnership for food security

African African

Agricultural

Fund

SMEs Large Scale

Technical

Assistance

Facility

Agvance will catalyze 250 investments

Agvance

Africa

Technical

Assistance

Facility

Donors3ADI

PartnersDFIs

Institutional

InvestorsAfrica

Ag Fund

Ag CoAg CoAg Co

Ag Fund

Ag CoAg CoAg Co

Ag Fund

Ag CoAg CoAg Co

Ag Fund

Ag CoAg CoAg Co

Facility

Concluding thoughts

• The ADB is placing renewed emphasis on the

agribusiness sector

– Public sector and private sector finance

– Direct and indirect instruments

• Project examples show that instruments can be

structured to meet diverse needs

• Partnership is essential

Thank you

Geoffrey Manley

Chief Investment Officer – Agribusiness & Agroenergy

Private Sector Operations Department

African Development Bank

Email: g.manley@afdb.org